[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Notices]
[Pages 38929-38930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18470]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-410]


Central Hudson Gas & Electric Corporation (Nine Mile Point 
Nuclear Station, Unit No. 2); Order Extending Approval Regarding 
Restructuring of Central Hudson Gas & Electric Corporation by 
Establishment of a Holding Company Affecting License No. NPF-69, Nine 
Mile Point Nuclear Station, Unit No. 2

I.

    By Order dated July 19, 1998, the Nuclear Regulatory Commission 
(the Commission or NRC) approved the proposed indirect transfer of 
Facility Operating License No. NPF-69, to the extent it is held by 
Central Hudson Gas & Electric Corporation (Applicant), to an unnamed 
holding company to be created with the Applicant, a wholly owned 
subsidiary, in accordance with electric industry restructuring goals 
established by the New York State Public Service Commission (NYSPSC). 
The approval was given in response to Applicant's application dated 
April 8, 1998, as resubmitted June 8, 1998, and supplemented by letters 
dated April 22 and July 9, 1998, for consent under Section 50.80 of 
Title 10 of the Code of Federal Regulations (10 CFR 50.80). By its 
terms, the Order of July 19, 1998, becomes null and void if Applicant's 
proposed holding company restructuring is not completed by July 19, 
1999, unless on application and for good cause shown, this date is 
extended by the Commission.
    Applicant is licensed by the Commission to own and possess a 9-
percent interest in Nine Mile Point Nuclear Station, Unit 2 (NMP2), 
under Facility Operating License No. NPF-69, issued by the Commission 
on July 2, 1987. In addition to Applicant, the other owners who may 
possess, but not operate, NMP2 are New York State Electric & Gas 
Corporation with an 18-percent interest, Long Island Lighting Company 
with an 18-percent interest, and Rochester Gas and Electric Corporation 
with a 14-percent interest. Niagara Mohawk Power Corporation (NMPC) 
owns a 41-percent interest in NMP2, is authorized to act as agent for 
the other owners, and has exclusive

[[Page 38930]]

responsibility and control over the operation and maintenance of NMP2. 
NMP2 is located in the town of Scriba, Oswego County, New York.

II.

    Under cover of a letter dated June 7, 1999, Applicant submitted an 
application requesting that the expiration date set forth in the Order 
of July 19, 1998, be extended to June 30, 2000. According to this 
submittal, under the terms of paragraph VIB6 of the Amended and 
Restated Settlement Agreement (referenced in Part II of the NRC's Order 
dated July 19, 1998), the NYSPSC permitted Applicant to invest $100 
million in its unregulated subsidiaries, but only before the date the 
holding company restructuring is effected. Thus far, Applicant has so 
invested $25.5 million. However, Applicant needs additional time to 
invest the remaining $74.5 million in suitable investments. Applicant 
further states that there have been no material changes from the facts 
set forth in its previous application, as resubmitted and supplemented, 
leading to the Order of July 19, 1998.
    The NRC staff has considered the foregoing request of June 7, 1999, 
and has determined that Applicant has demonstrated good cause to extend 
the expiration date set forth in the Order of July 19, 1998, approving 
the proposed restructuring.

III.

    Accordingly, pursuant to Sections 161b and 161i of the Atomic 
Energy Act of 1954, as amended, 42 USC 2201(b) and 2201(i), it is 
hereby ordered That the effectiveness of the Order of July 19, 1998, 
approving the application regarding the proposed restructuring of 
Applicant by the establishment of a holding company, is extended such 
that if the restructuring is not completed by June 30, 2000, the Order 
of July 19, 1998, as hereby extended, shall become null and void.
    This Order is effective upon issuance.
    For further details with respect to this Order, see letter and 
request dated June 7, 1999, from Applicant which are available for 
public inspection at the Commission's Public Document Room, the Gelman 
Building, 2120 L Street, NW., Washington, DC, and at the local public 
document room located at the Reference and Documents Department, 
Penfield Library, State University of New York, Oswego, New York 13126.

    Dated at Rockville, Maryland, this 13th day of July 1999.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 99-18470 Filed 7-19-99; 8:45 am]
BILLING CODE 7590-01-U